Utilizing environmental information and pricing strategies to reduce externalities of tourism: the case of invasive species in the Galapagos

The increase in demand for nature-based tourism brings economic and educational benefits but risks the introduction of invasive species. Increasing the length of tourist trips can better balance these benefits and risks by maintaining revenues while reducing the number of unique contacts with tourists. Changing the relative prices of trips can induce tourists to take longer trips. We hypothesized that providing information about the negative externalities of tourism could improve the effectiveness of such pricing strategies.

We administered one of two discrete choice surveys to tourists considering a trip to the Galapagos. One of the surveys described the Galapagos as a fragile ecosystem susceptible to invasive species; the second described it as a standard nature-based destination. For each sample, we estimated the probability of the tourist choosing a short versus long trip, given the tourist's personal information and trip options presented to him. We then simulated the demand for trips using three pricing strategies. We found that providing information on invasive species significantly increased the efficacy of strategic pricing. We propose using a two-prong approach to tourism management: educate potential tourists about the islands’ vulnerabilities, and simultaneously increase the per-day cost of short trips relative to that of longer trips.     

Quality of service and segmentation in the MICE industry: An approximation based on fuzzy logic

This article aims to evaluate the service quality experienced at academic conferences held at the Universidad Técnica Particular de Loja in Ecuador. Our approach is based on fuzzy logic and ideal solutions to calculate a global attendee satisfaction index for specific market segments: Gender, nationality, and age. Current literature on the service quality experienced by conference attendees is still scarce. Our results show that the analyzed segments experience varying levels of satisfaction, and that the more influential attributes to each of them are also different. Our results can be applied to improve the competitiveness of Loja and that of Universidad Técnica Particular de Loja.     

Discretionary Accruals and Auditor Behaviour in Code-Law Contexts: An Application to Failing Spanish Firms

This study examines the relationship between earnings management and auditor behaviour in the pre-bankrupt client segment of the Spanish audit market. As proxies for auditor behaviour, we use type of audit firm (Big N/non-Big N) and type of audit report. In contrast to the USA, audit reports in Spain often include modifications other than a going-concern opinion. This allows us to study the relationship in more detail than is possible with US data. The results of our study show that discretionary accruals are negatively related to going-concern opinions but are positively related to reports modified for reasons other than going-concern problems. However, unlike Butler et al. (Journal of Accounting and Economics, 37, pp. 139–165, 2004) the negative relationship is explained not by liquidity survival tactics but by auditor conservatism. We find this conservatism not only in the value of discretionary accruals but also in the qualifications that accompany a going concern. In these cases GAAP violations have a much greater income effect and a stronger relationship with the reversal of manipulation accumulated over the years than with the manipulation introduced during the last year. Finally, our results suggest that Big N differentiation in a code-law country is context-specific and depends on the business risk parameter of the ‘audit risk model’. In particular, for high-risk firms, Big N auditors show a significantly lower level of discretionary accruals and a greater propensity to issue a going-concern opinion.     

Disaggregating and reaggregating work: Workers,management and the struggle over creating coherency and purpose in a context of work degradation

The article argues that whilst there is a growing sense of degradation and worsening conditions (disaggregation) of work in the cleaning sector in general, there are some important contradictions which require complex organisational responses. In the main, there is a growing sense of isolation in this work, yet also a growing perception of autonomy and workers having to use discretion in new and challenging ways. This article focuses on these issues and management responses to reaggregate the nature of such work, creating new forms of identity and activities intended to enhance (or address) the levels of stability and sustainability at work as well as in operational processes. This management conundrum means that they need to deal with a range of job‐related, skill‐oriented worker learning and also representation issues. These responses bring to the fore the contested nature of such forms of work and how they are changing.     

Measuring Corporate Environmental Performance: A Methodology for Sustainable Development

Assessing corporate environmental performance (CEP) that is both comprehensive and consistent with sustainable development both for society and companies, while at the same time taking heed of the facts and interests of each stakeholder, is not a simple feat. Due to the multidimensional character of the sustainability concept, several questions must be considered in the evaluation process: (i) the qualitative nature of indicators and the complexity of developing a synthetic index; (ii) the difficulty of choosing properly statistical techniques for aggregation and (iii) the difficulty of introducing stakeholders’ preferences in the assessment models. This paper is an attempt to address this challenge by developing a framework for the assessment of CEP, based on the application of a fuzzy multi‐criterion decision‐making (MCDM) method. To achieve positive scores in a CEP assessment, an organization should be strategically committed and engage in environmental management and governance structures that are translated into good results in terms of both engagement and operational performance. Unless such premises are explicitly incorporated into the assessment criteria, the results would reveal that the CEP measurement could not be brought into a line with an earnest ambition of achieving true sustainable development. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment     

Influence of Social Media over the Stock Market

This research analyzes investors’ activity through social media and these media's influence over the Chicago Board Options Exchange Market Volatility Index (VIX) using a logit model and a fuzzy‐set qualitative comparative analysis (fsQCA). The logit results show that social media sentiment influences stock markets. Meanwhile, the fsQCA results show that the investors’ profile is important for explaining how social media influence the stock market. Particularly, holding period combined with experience in technical investors contributes to avoiding a raise in market risk, whereas for nontechnical investors message sentiment and experience form the combination that contributes to avoid a raise in market risk.     

Assessing ethical behaviours in the Spanish banking and insurance industries: evidence and challenges

This study aims to improve understanding of the ethical nature of the relations in two labour-intensive industries to facilitate the creation of an ethical culture. For this purpose, the authors first review literature related to the main influences on ethical behaviour, then perform an empirical analysis of those factors using a hierarchical stepwise regression of a database of 525 banking and insurance employees. Contrary to expectations, leadership has a less important effect on ethical behaviour than other organizational factors. The results reveal several implications for improving the management of ethical behaviour in these industries.     

Speed of Issuance,Lender Specialization,and the Rise of the 144A Debt Market

Using a large sample of convertible and straight debt issues in the public, 144A, and bank loan markets from 1991 to 2004, we find that the 144A market has risen largely at the expense of the nonshelf public market, the overwhelming majority of the 144A issues are subsequently registered, and straight debt issuers with the highest credit quality and transparency tend to use the shelf public market. Our findings suggest that firms’ preference for speed of issuance drives the growth of the 144A market, and banks and qualified institutional buyers have advantages over public lenders in handling credit risk and information asymmetry.     

Computing DSGE models with recursive preferences and stochastic volatility

This paper compares different solution methods for computing the equilibrium of dynamic stochastic general equilibrium (DSGE) models with recursive preferences such as those in Epstein and Zin, 1989, Epstein and Zin, 1991 and stochastic volatility. Models with these two features have recently become popular, but we know little about the best ways to implement them numerically. To fill this gap, we solve the stochastic neoclassical growth model with recursive preferences and stochastic volatility using four different approaches: second- and third-order perturbation, Chebyshev polynomials, and value function iteration. We document the performance of the methods in terms of computing time, implementation complexity, and accuracy. Our main finding is that perturbations are competitive in terms of accuracy with Chebyshev polynomials and value function iteration while being several orders of magnitude faster to run. Therefore, we conclude that perturbation methods are an attractive approach for computing this class of problems.